The investment arm of Ingka Group, the largest IKEA retailer, Ingka Investments, plans to allocate approximately €1 billion to organisations that are expanding their recycling infrastructure.
The annual consumption of natural resources by the global economy exceeds the Earth's capacity to regenerate by 75%. This leads to an enormous amount of waste, yet recycling rates are less than 20%. In order to accelerate the transition to a circular economy, Ingka plans to allocate approximately €1 billion to organisations that will contribute to recycling infrastructure. In doing so, we allocate resources to the recycling of a greater number of end-of-life products into secondary raw materials.
Circular Investments was established by Ingka Group in 2017 with the objective of investing in companies that are actively engaged in the transition to a circular economy. The primary goal is to have a beneficial effect on food waste, textiles, mattresses, and plastics. Our goal is to increase the availability of recycled materials in the marketplace and expand profitable enterprises that reduce millions of metric tonnes of CO2e emissions. Our portfolio companies have recycled an estimated 2.7 million metric tonnes of materials since 2017, thereby preventing the emission of over 9.4 million metric tonnes of CO2e.
"To future proof our business we want to invest in financially and environmentally resilient companies. When a product’s life at home ends, Circular Investments begins. Ingka Investments is committed to transitioning towards a circular economy and retaining the value of materials. For us, that means investing in companies that are developing technology or growing capacity to prevent waste or supply recycled materials." Lukas Visse rCircular Investments Portfolio Manager, Ingka Investments
Circular Investments' portfolio contains numerous examples of avoided carbon emissions, such as:
RetourMatras recycles mattresses, converting them into valuable materials that can be repurposed. Repoliol, a circular alternative to fossil-based materials in new foam products, is produced on an industrial scale and is utilised by a variety of customers, including IKEA, in 31 upholstery and mattress product lines. The organisation maintains manufacturing facilities in the Netherlands, England, and France, with an aggregate annual production capacity of 2.5 million mattresses.
Recycled household plastics: Morssinkhof Rymoplast, the foremost post-consumer plastic recycler, manufactures recycled plastics for products that are sold by both local and global brands. As a result of our investment, Morssinkhof Rymoplast has increased its plastic recycling capacity to 515,000 metric tonnes per year. Currently, Morssinkhof Rymoplast operates 11 recycling facilities in the Netherlands, Poland, Germany, and Belgium and has initiated the construction of two additional facilities in Belgium.
Innovative technology: The Next Generation Group is a collection of companies that provide solutions that are both ecologically and economically favourable. NGG provides a diverse selection of plastic recycling solutions that are both innovative and future-orientated, as well as advanced solutions for the treatment of organic waste, through its subsidiaries.
Peter van der Poel, Managing Director, Ingka Investments, said: “Our €1 billion ambition to invest in growing recycling infrastructure is crucial to Ingka Group’s broader sustainability strategy to go beyond our own operations. Through investments, we are committed to doing our part to ensure that valuable materials are recycled and reused in the production of new products. What would help us go further is if legislation was stronger at prioritizing recycling over incineration and landfilling, for example by ensuring that Extended Producer Responsibility schemes were resulting in higher recycling rates. We also welcome eco-design regulations to encourage the demand for these recycled materials and we are actively collaborating with relevant authorities and other stakeholders to address these issues.”
Source: IKEA
Comments